Twenty-Something and Debt-Free: My Realistic Course of Action to Find Financial Liberation

I am terrible with money. I am better than I was, but terrible compared to where I should be. When you're not struggling, it's tough to cut back; when you're not hungry, it's tough to see that you're struggling. If you're in debt, you're struggling. I am in debt and, despite my lifestyle, I am struggling. It's become acceptable in this society to owe money on your house, on your education, on your car and even on your clothing! I suppose in comparison to the rest of society I'm doing quite well. After all, I can still pay the bills. But just paying the bills is not enough for me anymore. I don't want to owe anyone anything. I want to have a financial cushion so that I don't have to panic if I lose my job. I want a vacation account. I want the liberation of knowing that when payday arrives I don't owe anything except my rent. Now the question is, how am I going to get there?

I figure that if I analyze how I came to be in this unfortunate financial position, I can work backwards get out of it! It may take a bit more work than that, but let's take a look at how I got here. I got my first credit card when I was 18-years-old. I built up credit as I bought and paid off monthly. I can't pinpoint when I decided that it would be a good idea to get two more credit cards, but that's what I did. They advertised no interest and I figured it would be fine if I paid off a TV, and iPod and some clothing over the course of a year. First it was electronics and clothing, but soon it was fancy restaurants and elaborate Christmas gifts. Before I knew it I was swimming in thousands of dollars worth of credit card debt, while I was still in college! The debt only got worse. I was spending so much of my cash to pay the credit card bills that I had no money to do anything with my friends. This left me racking up the debt in order to go out with my friends, while simultaneously trying to eliminate that same debt- what sound logic!

Eventually I realized that the cycle was vicious and that I had to break it. $8,500 later I vowed to stop using the cards. Once I was out of college and working full-time, every month the balance was a little less than the month before. I even paid off one entire card! I did not, however, make any lifestyle changes to expedite my journey to financial liberation. My salary after graduation permitted me to wine and dine regularly without adding to the debt. This was sufficient for me, until I realized that not adding to it, won't help me get rid of it any faster. Today I write to you about my vow to eliminate this credit card debt quickly completely.

I will have self-control. Relapsing, which has happened in the past, is not an option. I will save my money, rather than buy something I cannot afford. If I want $100 item, I will save $200, half of which will go toward my debt, the other half towards my reward. While it may seem contradictory to reward myself with monetary prizes, this is as realistic of goal as I can handle right now. Expecting myself to eliminate all spending, will only lead to failure and then a spending binge to make myself feel better. I am sure that having to pay double for everything I buy will serve as a deterrent; I will definitely forgo a new iPod or computer, if the old ones still work.

I will set a budget for dining out and alcohol consumption. This is a great choice for both my waistline and my wallet. One very large bottle of top-shelf gin costs approximately $45 and is likely to last two months. This is much more effective than spending $8 on a 6-pack of beer once or twice a week. The gin also has far fewer calories than beer, making it a smart decision in more than one way. I'm sure some of you are wondering why I wouldn't just stop drinking completely. Sounds like this girl has a problem. It's just another one of those unrealistic goals. Much like depriving yourself of food when you're on a diet, too much restriction when on a financial diet can results in binge spending. If I'm going to be going out less, I will be staying in more. Maybe I'd like to serve my guests a drink or maybe I want my own drink after a particularly long work week. Having the bottle at home is much more economical than paying $7 or $8 for one drink if I were to meet my friends at a bar. I work all day long and I study in the evenings until my eyes won't stay open any longer. My demanding lifestyle leads me to believe that I deserve to go out on Friday and Saturday nights. My credit card statements, however, lead me to believe I deserve the liberation of living debt-free. When I'm debt-free I won't ever have to vacillate between going out on the weekends and the more boring alternative. In the meantime, it's unrealistic for my not to go out at all and it's difficult to set a budget when you're not sure where you will eat. It is realistic to say I will eat dinner at home, if I'm going to have drinks with friends or I will not drink if I'm going to have dinner with friends.

I often forget that dining out includes lunch time. While I try to bring lunch to the office with me, there are mornings where I nearly leave the house without my shoes. I vow to make it easier for myself to take lunch to work. I will pack leftovers from dinner into a Tupperware container at night. I will keep pre-made lunches in the freezer for the nights that I forget. If I bring lunch 4 out 5 weekdays, I save $160 a month. I will keep those $160 in mind when I'm "too tired" to pack my lunch; it will serve as motivation to get myself in motion. How easily we forget how quickly those $5 subs add up.

Despite my stable income, making a little more money -which is set aside just to pay credit cards- is always beneficial. It's difficult to allot extra time to freelance writing when I am in graduate school and working 45 hours a week, but I am determined to be free. Associated Content allows me to publish only as much work as I have time for. I promote my work on twitter, facebook, digg and stumbleupon whenever I have time. Though I would like to be the next Christine Cadena, with her 6,000 daily page views, I know it will take time. While I generate a following on AC, I have also applied for a few other freelance positions, but only as many as I think I can handle. Initially, all the extra money will go towards debt. When the debt it gone, the money will go towards that cushion bank account that I've always wanted.

I will not carry credit cards. You may think that had this been my first step in eliminating my debt, the other steps would not have been necessary. I had to work my way up to this one, because it's not as easy as it sounds. Leaving my credit cards at home means I can't spend money I don't have. This also means I may not be able to do everything I want to do. It means I will have to be patient when I want something that I can't affordl it eliminates those impulse purchases that to which I've grown so accustomed.

I still have a lot of road left to travel in my journey to financial freedom. I will commit to one step at a time. One day where I make my coffee, rather than buying it. One work week where I take my lunch to work all 5 days. One month where I choose to stay in and watch a movie or play scrabble on the weekends, rather than joining my friends at a bar. I hope that in 6 months I can write to you about how my vow to become and to remain debt-free was successful. In the meantime, I would love to hear your success stories, your struggles and your support when it comes to managing debt.